Let's forget what we have invested. Starting from zero: the assertion that power law returns are a key factor in portfolio performance, like decision quality, ignores the prerequisites for these laws to manifest.
The sunk cost test suggests that this hierarchy is too general and does not account for environments where markets are less mature.
Local dynamics and regulatory constraints, such as limited access to venture capital in Eastern Europe, can prevail over any theoretical statistical distribution.
In these contexts, decision quality becomes much more important than simply observing a power law.
We should accept the idea that these laws are universally fundamental to performance, because they are often secondary to market realities.